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UN Secretary General Koffi Annan
Photo: UN

Every hour, two new AIDS cases are reported among people 25 and younger. Still, thanks to anecdotal evidence and to highly publicized cases of celebrities such as Magic Johnson, there is a growing perception among many Americans that HIV/AIDS is no longer the killer it once was.

And, in a sense, there is some truth to that. If you are tested regularly, have access to the latest drugs and can maintain a rigorous program of up to 40 pills per day and endure their side effects, and are part of a well-structured health care system, you can continue living for years after contracting HIV. In short, if you live in a rich, western country, chances are you will be able to get the help you need to live a longer life.

But the picture is far different in the world's developing countries, where roughly 37 million people are currently infected with HIV or have full blown AIDS, according to the United Nations.

In Sub-Saharan Africa, in particular, AIDS can only be described as a 21st century plague. There, 28.1 million people are currently HIV positive. Last year alone, 3.4 million adults and children in the region were newly infected with HIV and 2.3 million died from AIDS-related causes. In some towns and cities along the Zimbabwe-South Africa border, it is estimated that 70% of all adults are HIV positive.

If current trends continue, HIV/AIDS will not just cause immeasurable anguish and suffering among Africa's millions but could destabilize entire societies as sizable percentages of their populations (doctors, teachers, truck drivers, professors, government workers, business leaders, etc.) perish.

On the most superficial level, the solution to the world AIDS problem appears relatively easy: simply take the drugs that slow the progress of HIV/AIDS in humans available in developed nations and distribute them to poorer countries.

But at stake in the current AIDS crisis are not just millions of lives but millions of dollars and, according to some, a precedent that might impact the rules of intellectual property and international trade for years to come.

The Basics of HIV/AIDS

Understanding the geopolitics which have allowed the current crisis to reach such an unprecedented scale requires at least a basic knowledge of what HIV and AIDS are, along with a primer in how the drugs that combat them work.

First of all, HIV doesn't kill people. It infects people's immune systems. Bodies with significantly debilitated immune systems can die of infections that healthy immune systems simply fight off (these include pneumonia, blood stream infections, meningitis, and others). AIDS is a term used to describe HIV infected people with immune systems that have been severely compromised.

To date, there is no cure for HIV. In other words, once HIV positive, always HIV positive. However, there is currently a number of different drugs which, when taken together in the right sequence and combinations around the clock, can keep HIV suppressed. So suppressed, in fact, that many people have been taking these drug 'cocktails' for years and have yet to develop AIDS.

But there are down sides to this treatment, which is also known as 'triple therapy'. First, if a patient stops taking the drugs, even for one day, the virus will rear its ugly head and start replicating again. Second, if a patient goes back on triple therapy after stopping, the virus will have mutated against it. Thus the patient has burned a bridge and that treatment won't be effective ever again. Moreover, he or she now has a more sophisticated version of the virus, which can be passed to others through blood transfusions, sexual contact, or shared needles.

The Challenges to the Third World

So the challenge in poor countries isn't simply getting the right drugs into the hands of people who need them but finding a way to make sure those people take the drugs properly and consistently. For years, the big American and European drug companies have contended that it is reckless to allow countries with little or no health care systems to have access to their treatments because they would not be administered correctly.

AIDS activists point to Brazil as a nation in the developing world, which had a shabby health care infrastructure for years but whose government has successfully administered triple therapy to citizens infected with HIV. As a result, as of January, 2001, the rate at which Brazilians were dying from AIDS related complications had dropped by half.

Conditions and infrastructures in most Sub-Saharan nations are inferior to those in Brazil and doubts remain as to whether they will be able to oversee the implementation of triple therapy on a mass scale without significant outside assistance. There have, however, been some hopeful signs in recent months. Two studies, conducted on volunteers in the African nations of Senegal and the Ivory Coast, showed that triple therapy was effective, at least on a small scale. The vast majority of those taking part in the survey saw detectable levels of the virus recede significantly, a sign that they were capable to sticking to the triple therapy regimen diligently.

Following the Money

Citing these studies, AIDS activists say that the big drug manufacturers' reluctance to make their products readily available to developing countries has more to do with minding their own bottom lines than with concerns over public health. As the number of confirmed HIV cases has skyrocketed, nations such as Brazil, Nigeria, Chile, India, and others have found themselves increasingly at odds with multinational drug conglomerates such as Merck, Eli Lilly, Roche, and Pfizer.

In countries such as the US, a year's dosage of triple therapy drugs costs about $10,000. Pharmaceutical companies can charge such high prices because they establish patents on the new treatments they develop that last 20 years. During that time, no other company can make and sell that same drug. So, when a manufacturer creates a drug for which there is very high demand, the sky is almost the limit on how much it can charge.

Of course, the average per capita income for most citizens in the developing world is less than $10,000 so there is no conceivable way they could afford triple therapy at US prices. Nor can most developing nations' governments afford to buy the drugs for their citizens at those prices because they too are cash poor.

But it doesn't cost a drug company $10,000 to develop a year's worth of the treatment. In fact, it isn't really known how much it costs them but one thing is for sure -- it's a lot less than ten grand. (If it wasn't, they wouldn't be profitable.)

So AIDS activists have demanded that the pharmaceutical firms make their drugs available at cut rates to developing countries. Until recently, few manufacturers had agreed. But led by Brazil, the developing countries have found a way to the heat up on the pharmaceutical firms in the last few years.

The World Trade Organization is the worldwide body that coordinates and sets rules for trade across the globe. Among the rules a country like Brazil must abide by in order to be a member of the WTO is that it will respect intellectual property patents established by companies in other WTO nations. So, for example, Brazil must acknowledge that Roche is the only company on earth that has the right to manufacture the drug Hivid. And the Brazilian government must make sure that no other company in Brazil produces a drug that does exactly what Hivid does. Since membership in the WTO is crucial to developing nations that want to export their goods abroad, violation of the rules is a risky gambit.

However, there is a clause in the WTO rules that states that in a health emergency a member nation can ignore such patents. Citing that clause, that is exactly what Brazil did several years ago. Working with drug makers in their own country, the Brazilian government began producing the medicines needed for triple therapy. Then, they began distributing them via a beefed up health care infrastructure that the government helped put in place.

This infuriated the drug companies who worried that other countries would follow suit and that their products would be produced and sold generically all over the world. They pressured the US government and others to take punitive steps against Brazil on their behalf.

But thanks at least in part to the increased attention the African AIDS crisis has received in the media, it is the drug companies that have blinked. Last December, ten African nations signed deals with pharmaceutical companies that slashed triple therapy drug prices by 85%. In exchange, these developed nations have agreed to monitor the drugs carefully to make sure that their citizens don't, in turn, export the drugs back to the developed world and sell them there for profit.

But not all the African nations got with the program. Nigeria, for example, has made it clear that it intends to buy anti-retroviral drugs from an Indian company for a price even lower than the ones agreed upon by the 10 other nations. And local officials in South Africa have begun importing generically produced drugs from Brazil.

For their part, the drug companies contend that their concerns are not profit driven. They point out that sales of anti-HIV drugs make up a relatively small portion of their annual revenues. They say they are more concerned with maintaining the sanctity of intellectual property patents, which they say are the cornerstone of their businesses and are responsible for the extraordinary advances in drug technology.

They say that AIDS and other anti-drug company activists have over simplified the economics of their industry when they claim the profits they earn on existing drugs are too large. They point to the fact that developing a new drug takes on average $500 million and 12 years to bring to market. To develop the newest, most effective drugs, they say, they need to maximize profits on existing products so they have more money to plow into research and development. Allowing companies in Brazil and India to copy their product sets a dangerous precedent that undercuts the entire system, they say.

Where the US Stands

Secretary of State Powell has been outspoken about the fact that he views the dramatic rise in the number of AIDS cases as more than merely a health crisis. AIDS is a national security problem. It is devastating problem in Sub-Saharan Africa. It is a pandemic. It requires our attention, and Congress has to be generous, he said last February.

AIDS activists, Secretary General Koffi Annan, British Prime Minister Tony Blair, and others have all pointed out that a coordinated international effort is needed to stanch the number of AIDS cases. For his part, the president pledged $200 million in US to such a project during a Rose Garden ceremony last Spring. But it is estimated that some $7-$10 billion will be needed to begin to address seriously the problem. And so far, neither the US nor its other developed world nations have come up with that kind of cash.

So the battles between developing nations and the pharmaceutical concerns are likely to continue to rage on. And as they do, millions contract HIV and die from AIDS across Africa, Asia, South America and elsewhere.

By Ethan Zindler


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